1. CORPORATE AND GENERAL INFORMATION
Supershakti Metaliks limited (the Company), was incorporated in India in the year 2012. The Company is domiciled in India, and has its registered office at 39,
Shakespeare Sarani, Premlata Building, 2nd Floor, Kolkata 700 017.
The Company is a Public Limited Company incorporated as per the provisions of The Companies Act' 1956 applicable in India.
The Company is engaged in business of Iron and steel manufacturing and allied activities. The Company is having its integrated steel plant at Durgapur, West Bengal, The
shares of the Company are listed on the Bombay Stock Exchange, SME Platform.
These financial statements have been approved by the Board of Directors of the Company in their meeting held on 26th May , 2025.
2. BASIS OF ACCOUNTING
2.1 Statement of Compliancy
The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (lnd AS) notified under the Companies (Indian Accounting
Standards) Rules, 2015 as amended from time to time, read with Section 133 of the Companies Act,2013 (“the Act") and presentation requirements of Division II of
Schedule III of the Act and other relevant provisions of the Act as applicable The Company has uniformly applied the Accounting Policy during the period presented.
2.2 B«ltoTPtcp3rgtlQn
The financial statements are prepared on a historical cost hasis except for the following assets and liabilities which have been measured at fair value:
• certain financial assets and liabilities which are classified as fair value through Statement of profit and loss or fair value through other comprehensive income;
Ý defined benefit plans and plan assets.
2.3 tuftfliqui mi PWBCTttticn Ctrrwa
The Financial Statements have heen presented in Indian National Rupees (INR), which is the Company's functional currency.
2.4 Hit of Estimates and Account he Judgements
The preparation of financial statements requires management to make judgements, estimates and assumptions in the application of accounting policies that affect the
reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Continuous evaluation is done on the estimation and
judgements based on historical experience and other factors, including expectations of future events that are believed to be reasonable, Any revision to such estimates
is recognised in the period in which the same is determined.
2.5 Current and non-current classification
The Company presents assets and liabilities in the balance sheet based on current/ non-current classification. An asset is treated as current when it is:
Ý Expected to be realised or intended to be sold or consumed in normal operating cycle or
Ý Held primarily for the purpose of trading or
Ý Expected to be realised within twelve months after the reporting period, or
• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months.
All other assets are classified as non-current
A liability is current when:
• It is expected to be settled in normal operating cycle or
• It is held primarily for the purpose of trading or
• It is due to be settled within twelve months after the reporting period, or
• There is no unconditional right to defer the settlement of the liability for at least twelve months.
The Company classifies all other liabilities as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities respectively,
The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. The Company has identified twelve
months as its operating cycle.
2.6 Recent Pronouncements
Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued
from time to time. During the year ended 31st March 2025, MCA has notified lnd AS 117 - Insurance Contracts and amendments to lnd As 116- Leases, relating to sale
and lease back transactions, applicable from 1st April 2024. The Company has assessed that there is no significant impact on its financial statements. On 9th May 2025,
MCA notifies the amendments to lnd AS 21 - Effects of Changes in Foreign Exchange Rates. These amendments aim to provide clearer guidance on assessing currency
exchangeability and estimating exchange rates when currencies are not readily exchangeable. The amendments are effective for annual periods beginning on or after
1st April 2025 The Company is currently assessing the probable impact of these amendments on its financial statements.
3. MATERIAL ACCOUNTING POLICIES
A summary of the material accounting policies applied in the preparation of the financial statements are as given below These accounting policies have been applied
consistently to all the periods presented in the financial statements.
3.1 Property, Plant and Equipment
3.1.1 R«ormltion and
Tangible Assets
Property, plant and equipment held for use in the production or/and supply of goods or services, or for administrative purposes, are stated in the balance sheet at cost,
less any subsequent accumulated depreciation and impairment losses. The initial cost at cash price equivalence of property, plant and equipment acquired comprises
its purchase price, including import duties and non-refurdable purchase taxes, any directly attributable costs of bringing the assets to its working condition and loLdliuii
and present value of any obligatory decommissioning costs for its intended use, if any.
In case of self constructed assets, cost includes the costs of all materials used in construction, direct labour, allocation of overheads, directly attributable borrowing
costs including trial run expenses (net of revenue)
Any material Spares having useful life of more than one year are capitalised under the respective heads as and when available for use
Profit or loss arising on the disposal of property, plant and equipment is recognised in the Statement of Profit and Loss.
3.1.2 Subsequent Cost
Subsequent expenditure is recognised as an increase in the carrying amount of the asset or recognrsed as a separate asset, as appropriate, only when it is probable that
future economic benefits derived from the cost incurred will flow to the Company and the cost of the item can be measured reliably. The carrying amount of replaced
item(s) is derecognised.
Any material repairs of property, plant and equipment are recognised in the carrying amount of the item if it is probable that the future economic benefits of the costs
incurred wilt flow ro the Companv The carrying amnunt of the replaced itemls> is Ht»rpr»gnicpH _ _
3.1.3 Capital Work-In-Progress
Capital work-in-progress is stated at cost which includes expenses incurred during construction period, interest on amount harrowed for acquisition of qualifying assets
and other expenses incurred in connection with project implementation in so far as such expenses relate to the period prior to the commencement of commercial
production.
3.1.4 Deoiedatlofi and Amortlutlon
Depreciation on tangible assets is provided on straight line method, considering residual value of 5% of the cost of the asset, over the useful lives of the assets, as
specified in Schedule II of the Companies Act, 2013 except in case of Plant and Machinery and components thereof, where useful life is determined by technical experts.
The useful life assumed hy the technical experts Is as under:
3.1,5 Derecognition
The carrying amount of an item of Property Plant and Equipment is derecognised on disposal or when no future economic henefits are expected from its use or disposal,
The gain or loss arising from the derecognition of an item of PPE is measured as the difference between the net disposal proceeds and the carrying amount of the item
and is recognised in the Statement of Profit and Loss when the item is derecognised.
3.2 I a«ets
3-2.1 Recognition and measurement
Intangible assets are stated at cost less accumulated amortization. Cost includes directly attributable expenditure for making the assets for its intended use.
3.2.2 Subsequent Cost
Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure is
recognised in the 5ta tement of Profit and Loss.
3.3 Impairment of Non-finance J Assets
The Company reviews the carrying amount of its assets an each Balance Sheet date for the purpose af ascertaining impairment indicators if any, by considering assets
of entire Plant as Cash Generating Unit (CGU). If any such indication exists, the assets' recoverable amount is estimated, as higher of Che Net Selling Price and the Value
in Use. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount.
Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable
amount, so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the
asset (or cash generating unit) in prior years. A reversal of an impairment loss is recognised immediately in the Statement of Profit and Loss.
3.4 8a*rowlng costs
Borrowing Costs consists of interest and other costs that an entity incurs in connection with the borrowings of funds. Borrowing costs also includes exchange difference
to the extent regarded as an adjustment to the borrowing costs. Borrowing costs directly attributable to the acquisition or construction of a qualifying asset are
capitalized as a part of the cost of that asset that necessarily takes a substantial period of time to complete and prepare the asset for its intended use or sale, The
Company considers a period of twelve months or mare as a substantial period of time. Transaction costs in respect of long term borrowing are amortized over the
tenure of respective loans using Effective Interest Rate |E R] method. All other borrowing casts are recognized in the statement of profit and lass in the period in which
they are incurred.
If any specific borrowing remains outstanding after the related asset is ready for its intended use or sale, that borrowing becomes part of the funds that an entity
borrows generally when calculating the capitalisation rate on general borrowings.
3.5 Inventories
Inventories of stores and spare parts are valued at or below cost after providing for cost of obsolescence and other anticipated losses wherever considered necessary.
Cost of inventory comprises all costs of purchase, nan-refundable duties and taxes, cost of conversion including an appropriate share of fixed and variable production
overheads and all other costs incurred in bringing the inventory to their present location and condition.
Inventories of items other than those stated above are valued at cost or net realizable value whichever is lower.
Cost in respect of:
a] Raw Materials, Consumables, Stores & Spares and Traded Goods are computed under weighted average basis,
b] Wnrk-in-Progress and Finished Goods are computed under weighted average basis.
c] By- Products are valued at net realisable value.
Net Realizable Value is the estimated sellingprice in the ordinary course less the estimated cost of completion and the estimated costs necessary to make the sale.
Materials and other supplies held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are
expected to be sold at or above cost,
The Company considers factors like estimated shelf life, ageing of inventory etc in determining the provision for slow moving, obsolete and other non-saleahle inventory
and adjusts the inventory provisions to reflect the recoverable value of inventory.
3.6 Government 6rants
Government grants are recognised when there is reasonable assurance that the Company will comply with the conditions attaching to them and that the grants will be
received.
Government grants are recognised in Statement of Profit and Loss on a systematic basis over the periods in which the Company recognises as expenses the related costs
for which the grants are intended to compensate. Where the Grant relates to an asset value, it is recognised as deferred income, and amortised over the expected useful
life of the asset. Other grants are recognised in the statement of Profit a Loss concurrent to the expenses to which such grants relate/ are intended to cover
Where the Company receives nan-monetary grants, the asset and the grant are recorded gross at fair amounts and released to the income statement over the expected
useful life and pattern of consumption of the benefit of the underlying asset, "Ý -*«*.
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3.7 Foreign Cut renew Trfngieilqni
Foreign Currency Transactions are translated into the functional currency using the spot rates of exchanges at the dates of the transactions. Monetary assets and
liabilities denominated in foreign currencies are translated at the functional currency spot rate of exchanges at the reporting date.
Foreign exchange gains and lasses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities are generally recognised
in profit or loss in the year in which they arise except for exchange differences on foreign currency borrowings relating to assets under construction for future
productive use, which are included in the cast of those qualifying assets when they are regarded as an adjustment to interest costs on those foreign currency
borrowings, the balance is presented in the Statement of Profit and Loss within finance costs.
Non monetary items are not retranslated at period end and are measured at historical cost (translated using the exchange rate at the transaction date],
3.8 EmplovecBenefles
Short Term Benefits
Short term employee benefit obligations are measured an an undiscaunted taasis and are expensed as the related services are provided. Liabilities for wages and
salaries, including nan-monetary benefits that are expected to be settled wholly within twelve months after the end of the period in which the employees render the
related service are recognized in respect of employees' services up to the end of the reporting period,
Other Lang Term Employee Benefits
The liabilities for leave encashment that are not expected to be settled wholly within twelve months are measured as the present value of the expected future payments
to be marie in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. The benefits are discounted using
the government securities (G-Sec) at the end of the reporting period that have terms approximating to the terms of related obligation, Remeasurement as the result of
experience adjustment and changes in actuarial assumptions are recognized in statement of profit and loss,
Post Employment Benefits
The Company operates the following post employment schemes:
— Defined Benefit Plans
The liability or asset recognized in the Balance Sheet in respect of defined benefit plans is the present value of the defined benefit obligation at the end of the reporting
period less the fair value of plan assets. The Company's net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount
of future benefit that employees have earned in the current and prior periods.
The defined henefit obligation is calculated annually by Actuaries using the projected unit credit method.
The liability recognized for defined benefit plans is the present value of the defined henefit obligation at the reporting date less the fair value of plan assets, together
with adjustments for unrecognized actuarial gains or losses and past service costs. The net interest cost is calculated by applying the discount rate to the net balance of
the defined benefit obligation and the fair value of plan assets. The benefits are discounted using the government securities (G-Sec) at the end of the reporting period
that have terms approximating to the terms of related obligation.
Remeasurement of the net defined benefit obligation, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the
asset ceiling, are recognized in other comprehensive income. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings
and will not be reclassified to the statement of profit and loss.
— Defined Contribution Plan
Defined contribution plans such as provident fund etc. are charged to the statement of profit and loss as and when incurred. Contribution to a defined contribution plan
is made in accordance with the company's policy and is recognised in the Statement of profit and lass.
3.9 Leases
The Company assesses whether a contract is or contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control
the use of an identified asset for a period of time in exchange for consideration To assess whether a contract conveys the right to control the use of an identified asset,
the Company assesses whether:
1 the contract invnlves the use of an identified asset
2. the Company has substantially all of the economic benefits from use of the asset through the period of the lease and
3. the Company has the right to direct the use of the asset.
Company as a lessee
The Company assesses whether a contract is or contains a lease, at inception of the contract.
At the date of commencement of the lease, the Company recognizes a right-of-use asset ("ROU") and a corresponding lease liability for all lease arrangements in which
it is a lessee, except for.leases with a term of twelve months or less (short-term leases), variable lease and low value leases. For these short-term, variahle lease and low
value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease.
RJjthtjof-tnf assets
The right-of-use assets are initially recognised at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the
commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and
impairment losses, if any Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of
the underlying asset.
If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated
using the estimated useful life of the asset, The right-of-use assets are also subject to impairment Refer to the accounting policies in Note 3.3 Impairment of non¬
financial assets.
Extension and termination options are included in many of the leases. In determining the lease term the management considers all facts and circumstances thatcreate
an economic incentive to exercise an extension option, or not exercise a termination option.
Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets, as follows:
Lease hold Land for €0 years
Lease Liabilities
At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease payments to be made over the lease term.
Lease payments included in the measurement of the lease liability comprise
•Fixed lease payments (including in-substance fixed payments) payable during the lease term and under reasonably certain extension options, less any lease incentives;
ÝVariable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date;
ÝThe amount expected to be payable by the lessee under residual value guarantees;
•The exercise price of purchase options, if the lessee is reasonably certain to exercise the options; and
•Payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease.
The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of
domicile of these leases.
After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the
carrying amount of lease liabilities is re-measured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments
resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset.
1.< 1v Lease liabilities are remeasured with a corresponding adjustment to the related right of use asset if the Company changes its assessment if whether it will exercise an
A* y, \exiension or a termination option.
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\ ‘^Lws* liability and ROU assets have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows, lease liabilities
L y J .jjjale been classified as current and non current under the head financial liabilities. The Company has used a single discount rate to a portfolio of leases with similar
Shaft-term {hmi and IgMgg of low-value iKjti
The Company applies the short-term lease recognition exemption to its short-term leases of Property, Plant & Equipment (i.e. those leases that have a lease term of 12
months or less from the commencement date and do not contain a purchase option). Lease payments on short-term leases and leases of low-value assets are
recognised as expense on a straight-line basis over the lease term-
On transition to INO AS dated April 1, 2020, the adoption of new standard resulted in recognition of Right-of-Use asset (ROU) of * 137.57 lakh, being leasehold land
recognised as ROU Assets transferred from property, plant 8t equipment.
Qn application of Jnd AS 11G, the nature of expenses has changed from [ease rent in previous periods to depreciation cost far the right-ta-use asset, and finance cost for
interest accrued on lease liability.
Others
The following is the summary of practical expedients elected on initial application:
(a) Applied a single discount rate to a portfolio of leases of similar assets in similar economic environment with a similar end date.
(h) Applied the exemption not to recognize right-of-use assets and liabilities for leases with less than 12 months of lease term on the date of initial application, variable
lease and low value asset.
(c) Excluded the initial direct casts from the measurement of the right-of-use asset at the date of initial appiication.
fd] The effective interest rate for lease liabilities is 8.5% p.a.
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